New Delhi’s economic pulse beat strongly in February as the services PMI clocked in at 58.1, reflecting sustained vigor in a critical growth engine. HSBC’s closely watched index showed minimal deviation from January’s 58.5, affirming the sector’s expansionary phase well above the neutral 50 mark.
Despite new business inflows softening to a 13-month low due to fiercer rivalry, the big picture stayed upbeat. Marketing initiatives and client engagements drove sales for many, countering competitive pressures. Service providers also boosted staffing to handle rising workloads, particularly from overseas markets showing robust upticks.
Pranjul Bhandari, HSBC India’s top economist, dissected the numbers: strong activity persisted, with international demand providing a vital lift. ‘The services PMI’s stability signals confidence amid global uncertainties,’ she observed.
Broader private sector momentum accelerated, with the composite PMI climbing to 58.9 – its highest in a quarter. Manufacturing’s outperformance amplified services’ solid showing. Among services, financial services and insurance shone brightest, posting top gains in new work and production. Conversely, property and professional services trailed, highlighting uneven recovery across niches.
This data bolsters forecasts of India’s economy outpacing peers, with services – contributing over half of GDP – anchoring resilience. Policymakers and investors will eye upcoming prints for signs of sustained acceleration.